<h3><strong>What is Binance Coin (BNB)?</strong></h3><p>Binance Coin (BNB) is the native cryptocurrency of the Binance ecosystem, initially created as a utility token to reduce trading fees on the Binance exchange. Over time, BNB's utility has expanded significantly, enabling payments, participation in token sales, and powering various decentralised applications (dApps) on the Binance Smart Chain (BSC).</p><h3><strong>How does Binance Coin work?</strong></h3><p><strong>Blockchain Infrastructure</strong>: BNB operates on the Binance Chain and Binance Smart Chain (BSC). The BSC is compatible with Ethereum's Virtual Machine (EVM), enabling smart contract functionality.</p><p><strong>Consensus Mechanism</strong>: Binance Smart Chain utilises Proof of Staked Authority (PoSA), a hybrid model combining Proof of Stake (PoS) and Delegated Proof of Authority (DPoA), ensuring fast and efficient transaction processing.</p><p><strong>Key Features</strong>: BNB employs an auto-burn mechanism that reduces the token's total supply over time, adding a deflationary aspect to its economic model.</p><h3><strong>What are the potential use cases for Binance Coin?</strong></h3><ul><li><strong>Trading Fees</strong>: Users on the Binance exchange receive discounts on trading fees when paying with BNB.</li><li><strong>Payments</strong>: BNB is accepted by numerous merchants for transactions such as travel bookings, online services, and e-commerce.</li><li><strong>Decentralised Finance (DeFi)</strong>: BNB is used as collateral and for liquidity in DeFi protocols operating on the Binance Smart Chain.</li><li><strong>Ecosystem Engagement</strong>: Developers and users leverage BNB to power dApps and participate in token launches within the Binance ecosystem.</li></ul><h3><strong>What is the history of Binance Coin?</strong></h3><ul><li><strong>2017</strong>: BNB was launched through an initial coin offering (ICO), raising $15 million.</li><li><strong>2021</strong>: The token achieved an all-time high price exceeding $600, reflecting increased adoption and utility.</li><li><strong>2024</strong>: Binance continues its quarterly token burns, gradually reducing BNB’s circulating supply to a target of 100 million tokens.</li></ul><p><br></p>

### What is BNB?
BNB, originally known as Binance Coin, is a cryptocurrency that serves as the native utility token of the BNB Chain ecosystem. It was launched to facilitate payments for transaction fees on the Binance exchange, providing users with discounts. The coin supports a broad array of uses within the Binance ecosystem, and its responsibilities have expanded into the larger BNB Chain.

### How does BNB work?
BNB operates within the BNB Chain ecosystem, which includes various blockchain platforms such as BNB Smart Chain (BSC), opBNB, and BNB Greenfield. BNB Smart Chain employs a Proof of Staked Authority (PoSA) consensus mechanism, which is an eco-friendly blend of Proof of Work (PoW) and Proof of Stake (PoS). This system supports the deployment of Ethereum-compatible smart contracts and allows for fast transaction times. Validators in the network, selected based on the amount of BNB they stake, participate in a governance system that allows them to propose and vote on decisions affecting the chain.

### What are the potential use cases for BNB?
BNB's use cases are diverse, involving several sectors and industries:

1. **Trading Discount**: Users can pay trading fees on the Binance exchange with BNB for reduced costs.
2. **Ecosystem Services**: BNB is used across Binance services, including token sales, staking, and NFT purchases.
3. **Cross-Chain Transfers**: BNB facilitates asset transfers between multiple blockchain networks.
4. **Staking and Investment**: Users can stake BNB for rewards or hold it as an investment.
5. **DeFi Applications**: BNB is widely used in decentralized finance (DeFi) applications for liquidity provision, lending, and yield farming.
6. **AI Projects and Partnerships**: BNB Chain supports AI projects, offering a robust platform for these integrations.

### What is the history of BNB?
BNB was launched in 2017 by Changpeng Zhao, amidst the creation of the Binance exchange. Since its inception, it has achieved several milestones, such as the introduction of the Binance Smart Chain, the processing of over $100 trillion in trades, and navigating various regulatory challenges. Technical advancements include notable hard forks like Tycho and Erdos, as well as network upgrades to improve functionality and reduce fees. Despite regulatory challenges, BNB has maintained its position as a major cryptocurrency by market capitalisation, demonstrating strong trading volumes and investor interest.

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